The Strategy Compass: Leadership

1
The Strategy Compass Leadership

• Professor Patrick Mc Namee
• Date

2
Leadership

• The detail

3
Leadership and Change

• Part I Leadership vs. management
• Part II Why change succeeds or fails
• Part III The heart of change
• Part IV Winning in times of great change

4
Part I Leadership versus Management

• Is there a distinction?

5
Management

• Planning and budgeting
• Organizing and staffing
• Controlling and problem solving
• Efficiency
• Profitability

6
Leadership

• Vision strategy
• Communicating it and getting buy-in
• Motivating
• Growing, evolving and adapting to change

7
Need both management leadership

8
Need both management leadership

9
Leadership Management Everyone is needed

10
Long run success can kill leadership

• A history of success
• Visionary entrepreneurship
• A dominant position
• Great success in growth and profits
• Consequences
• Pressures from inside the firm to cope
• To keep control cope with bureaucracy
• hire and promote managers not leaders

11
Leadership more possible

12
Part II Why transformations succeed or fail
The 8 step process

• Urgency
• The guiding coalition
• Develop vision strategy
• Communicating the vision
• Empowering all
• Short term wins
• Consolidate and drive
• Institutionalise change in culture

13
Urgency

• Examine market and competition
• Discuss crises and opportunities

14
2. Guiding Coalition

• Group with enough power
• Getting them to work together

15
3. Vision and Strategy

• Vision to direct change effort
• Strategies to achieve vision

16
4. Communicating

• Use all vehicles
• Role modelling behaviour by coalition

17
5. Empowering

• Getting rid of blockers
• Changing undermining systems or structures
• Encourage risk, non-traditional ideas actions

18
6. Short-run wins

• Visible performance improvements
• Creating wins
• Visibly recognising and rewarding

19
7. Consolidating and building

• Use gained credibility to change impediments
• Hire and promote doers
• Reinvigorate new projects
• No victory declaration too soon

20
8. Institutionalizing change

• Customer and productivity orientated behaviour
• Articulating connections between new behaviour
  and success
• Succession

21
The winning process

75-80 Leadership 20-25 Management Not the
other way around
22
Part III The heart of change

• 1 Problem
• Changing peoples behaviours

23
The Heart of the Matter

See Feel Change
24
The Heart of the Matter

Analysis Think Change
25
Part IV Winning in times of great change

• Five Degrees of Change
• Little change long product life cycles
• Continuous improvement incremental changes
• Non-incremental new products and processes
• Whole new businesses
• Whole new business models new economic and
  organizational models

26
Winning now

Handling 1, 2 and 3 well needed Great
management Visionary leadership
27
Winning in the future

Handling 1, 2, 3, 4 and 5 well needs Great
management Visionary leadership Unleashing
the leadership and energy of all
28
Unleashing

Basic Management
Visionary Leadership
Unleashing Leadership
Sets agenda by
Planning Budgeting
Develop Visions Strategy
Tap in to hopes dreams
29
Unleashing

Basic Management
Visionary Leadership
Unleashing Leadership
Structures, Hiring, Processes, Training etc
Commun, Strategies Buy-in
Tap in, trust, integrity, values
Needs
30
Unleashing

Basic Management
Visionary Leadership
Unleashing Leadership
Controlling, Accountability, Problem solving
Motivating Rewards
Supporting Dreams, Hopes, Cherished Values
Execute by
31
Unleashing

Basic Management
Visionary Leadership
Unleashing Leadership
Create efficient systems 50 mph
Growing organizations 90 mph
Astonishing Groups 180 mph
Results
32
Guilianis 6 Principles of Leadership

• Philosophy must have it, copy leaders,
  freedom/truth prevails
• Optimist things are bad follow me solve
  problems and see the one exit
• Courage not absence of fear overcome it NY
  firemen
• Relentless preparation 1 hr in court 4 hours
  preparation. Coaching pays.
• Teamwork know strengths and weaknesses be a
  player
• Communication a tree falls in a forest
  verbal and caring

33
Figure 15 Measuring the effects of human
resources in stable and unstable environments
Firms having a favourable score for the parameter
Have an ROCE greater than firms scoring poorly by
ROCE ()
34
The Strategy Compass Leadership

• Professor Patrick Mc Namee
• Date